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The ifo Tax and Transfer Behavioral Microsimulation Model

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  • Maximilian Joseph Blömer
  • Andreas Peichl

Abstract

This paper describes the ifo Tax and Transfer Behavioral Microsimulation Model (ifo-MSM-TTL), a policy microsimulation model for Germany. The model uses household microdata from the German Socio-Economic Panel and firm data from the German Linked Employer-Employee Dataset. This microsimulation model consists of three components: First, a static module simulates the effects of a tax-benefit reform on the budget of the individual household. This includes taxes on income and consumption, social security contributions, and public transfers. Secondly, behavioral labor supply responses are estimated. Thirdly, a demand module takes into account possible restrictions of labor demand and identifies the partial equilibrium of the labor market after the supply reactions. The demand module distinguishes our model from most other microsimulation tools.

Suggested Citation

  • Maximilian Joseph Blömer & Andreas Peichl, 2020. "The ifo Tax and Transfer Behavioral Microsimulation Model," ifo Working Paper Series 335, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_335
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    Cited by:

    1. Maximilian Joseph Blömer & Przemyslaw Brandt & Mosler Martin & Andreas Peichl, 2021. "Verteilungswirkungen des Kinderbonus und der temporären Mehrwertsteuersenkung im Jahr 2020," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 74(02), pages 45-50, February.
    2. Spermann, Alexander, 2022. "Aktuelle Mikrosimulationsstudien zur Einführung eines partiellen bedingungslosen Grundeinkommens in Deutschland: Eine kritische Analyse," FRIBIS Discussion Paper Series 01-2022, University of Freiburg, Freiburg Institute for Basic Income Studies (FRIBIS).
    3. Maximilian Joseph Blömer, 2022. "Employment and fiscal effects of the inclusive universal child benefit. Microsimulation of a child benefit reform – Study and additional appendix," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 130, September.
    4. Maximilian Joseph Blömer & Andreas Peichl, 2020. "Who Has an Incentive to Work? Participation Tax Rates of the German Tax-Transfer System," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 118, September.
    5. Maximilian Joseph Blömer & Andreas Peichl, 2021. "Microsimulation of Different Variants of an Unconditional Basic Income in Germany," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 121, September.
    6. Buhlmann, Florian & Hebsaker, Michael & Kreuz, Tobias & Schmidhäuser, Jakob & Siegloch, Sebastian & Stichnoth, Holger, 2022. "ZEW-EviSTA: A microsimulation model of the German tax and transfer system," ZEW Discussion Papers 22-026, ZEW - Leibniz Centre for European Economic Research.
    7. Denisova, Irina & Varioshkin, Nikita, 2022. "The impact of foreign trade shocks on well-being of Russian households: Microsimulation approach," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 68, pages 73-92.

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    More about this item

    Keywords

    Tax and benefit systems; labor supply; labor demand; Germany; policy simulation;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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